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This month's decision by the Reserve Bank of Australia to raise interest rates was not clear-cut.
Minutes of the December 1 monetary policy committee meeting, released Tuesday, show RBA Governor Glenn Stevens and the committee saw the arguments for and against this month's interest rate increase as "finely balanced."
At the session, the bank raised its benchmark interest rate by 25 basis points to 3.75 percent. It was the third straight monthly quarter-point increase.
The minutes show members felt Australia's economic growth was "materially stronger than had been expected earlier in the year." It also found that prospects for continued growth were "generally strengthening."
Board members saw that December 1 increase, combined with moves in October and November ''as materially shifting the stance of monetary policy to a less accommodative setting and, therefore, as increasing the flexibility available to the board at future meetings.''
Underlying inflation was seen as likely to moderate further in the near term, but was not expected to fall as far as was thought earlier in the year.
The central bank repeated its forecasts that the underlying inflation rate would be in the 2 to 3 per cent target range in 2010, while growth in private sector demand - the variable most influenced by interest rates - would be ''close to trend.''
The minutes also showed credit for housing was "expanding at a solid pace," with many businesses paying down debt.
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